What is the historical performance of the smart car index?
CSI (930721. CSI) is the subject index released by CSI on August 5, 2015. Component stocks select companies that provide terminal perception and platform application for smart cars, and other representative Shanghai and Shenzhen A shares that benefit from smart cars as sample stocks, reflecting the overall performance of intelligent automobile industry companies. At the initial stage of preparation, 41 constituent stocks were included in the CSI smart car theme index, and the number was dynamically adjusted, with 46 at the most and 20 at the minimum. As of November 24, 2020, there were 36 constituent stocks in the index.
According to the range of free circulation market value, the number of constituent stocks with 10-20 billion and 20-50 billion is the largest, both of which are 12, accounting for 33.33% respectively. The range of 100 billion to 200 billion is out of stock. There is only one enterprise with more than 200 billion yuan, and its circulation market value is 212.138 billion. In terms of weight distribution, 20-50 billion component stocks accounted for the largest proportion, accounting for 47.0% of the index weight.
How does the smart car index perform?
As can be seen, compared with CSI 300, CSI 500 and Wanda all-a, the cumulative return of CSI smart car theme index in the past nine years is 434.83%. From the perspective of year by year, the CSI smart car theme index showed negative returns in 12 years, 16 years and 18 years, and the decline was equivalent to that of the CSI 500. However, in other positive income years, a large proportion of the CSIs smart car theme index gained 62.31%, 93.82% and 83.81% respectively in 13 years, 15 years and 19 years. On the income side, the average annualized volatility was 22.75%, far higher than other broad base indexes; on the volatility side, the annualized volatility was close to that of CSI 500, and the information ratio was 0.6, which was equal to Wande quana a.
What is the valuation level of smart car index?
Different from traditional industries, intellectualization is the future development trend of automotive technology, and the CSI intelligent vehicle theme index has a stronger growth attribute. Its price earnings ratio is now 18.64 times higher than the historical high of 18.82 times on the date of 2020, and it is now at the historical high of 77.64 times on the date of 2020. With the accelerated development of Chinas intelligent automobile industry, the core of the industry is transferred from manufacturing to high-tech, from hardware to software, and performance improvement accelerates the digestion of valuation. Corresponding to the current stage of valuation, there is still a large space for the index.
What are the advantages of ETF?
So, as the first ETF to track the smart car industry in A-share market, what are the advantages of rich country China Securities intelligent automobile ETF?
Soochow Securities believes that:
In the short term, the core benefits from the intelligent auto parts industry; in the long run, independent auto enterprises are expected to achieve an all-round rise relying on Chinas gradually improved intelligent automobile supply chain system.
From the national policy level, according to the current policy guidance, it is expected that in 2025, China will realize the conditional large-scale production of self driving intelligent vehicles, and basically achieve the strategic goal of a powerful transportation country by 2035, and the intelligent vehicle sector will usher in a period of development opportunities.
The CSI smart car theme index has performed well since its release, with an annualized income of 22.75%. Its price earnings ratio (TTM) is 52.82 times, which has fallen by 18.6% compared with the historical high of 64.86 times. With the accelerated development of the intelligent automobile industry, the core of the industry has shifted from manufacturing to high-tech, from hardware to software. With the improvement of performance, it will accelerate the digestion of valuation, and will usher in the main market driven by profit.
As the first smart car theme ETF in the market, it is an effective investment tool for investors to share the dividends of the smart car industry.
Behind the rise of smart car ETF, investors are optimistic about the fundamentals of smart cars.
We believe that 2020-2030 is the golden decade for the development of intelligent driving.
According to the national plan, the sales penetration rate of L2-L3 intelligent connected vehicles will be 50% in 2025, and 70% in 2030. L4 vehicles are expected to be widely used. In order to enhance the competitiveness of products, the penetration rate of new intelligent cockpit and ADAS is rapidly increasing. We predict that the space of intelligent cockpit industry will reach 110 billion yuan in 2025, with a compound growth rate of 17% from 2021 to 2025. According to Roland Bergers calculation, the global market size of automatic driving vehicle end system is 113.8 billion US dollars in 2020, and it is expected to reach 500 billion US dollars by 2030, among which chips, sensors and software algorithms will contribute the main increment. We believe that the intelligent automobile industry chain company is expected to grow rapidly with high investment value.
According to the national plan, the sales penetration rate of L2-L3 intelligent connected vehicles will be 50% in 2025, and 70% in 2030. L4 vehicles are expected to be widely used.
In order to enhance the competitiveness of products, the penetration rate of new intelligent cockpit and ADAS is rapidly increasing. We predict that the space of intelligent cockpit industry will reach 110 billion yuan in 2025, with a compound growth rate of 17% from 2021 to 2025.